Unnecessary Delays: When Is a Stalled Insurance Claim Considered Bad Faith in Florida?
In an ideal world, insurance companies would promptly investigate claims, communicate effectively, and pay out valid claims within a reasonable time. However, sometimes delays arise, some of which are unnecessary. In some cases, unnecessary delays can cross the line from mere inefficiency and give rise to an insurance bad faith claim. This article discusses when a stalled insurance claim can be considered bad faith in Florida.
Insurance Companies’ Duty of Good Faith
All insurance companies in Florida are legally obligated to handle claims with honesty, fairness, and due diligence. An insurance company should never put its interests above the policyholder’s. The same way an insurance company is committed to protecting its interests is how it should be committed to protecting your interests. Insurance companies must investigate and process claims promptly, communicate honestly and openly, and avoid deceptive or unfair practices. If an insurance company fails to uphold this duty, it may be acting in bad faith.
What Is an Unnecessary Delay in Florida?
In Florida, not all delays that arise during the insurance claims process are considered unnecessary. Some delays are necessary. For instance, necessary delays can arise from the need for an investigation or due to disputes over policy coverage that need clarification. Delays become unnecessary and possibly actionable when your insurer uses tactics to frustrate you and avoid paying what is owed. When a delay becomes unnecessary, it may give rise to a bad-faith claim.
Common tactics insurance companies use that may indicate unnecessary delays include;
- Ignoring you or communicating slowly
- Making repeated and unreasonable demands for documents
- Not sending an adjuster in a timely manner to conduct investigations
- Failing to fairly evaluate the information presented, and make claim payment as due
If your insurance company cannot give you a straightforward, valid reason for the holdup, you should seek the advice of an experienced insurance attorney without delay. A successful bad faith claim can allow you to recover several damages, including;
- The full value of what is owed under your policy
- Interest
- Damages you’ve suffered due to the delay
- Legal and court costs
In an extreme case, you may be eligible to recover punitive damages, which are meant to punish the insurance company.
The Civil Remedy Notice
Under Florida Statutes Section 624.155, you must file a formal Civil Remedy Notice with the Florida Department of Financial Services, providing your insurer with notice and an opportunity to cure, before you can sue your insurance company for bad faith. This notice alerts the insurance company that you are alleging a violation of their good faith duties.
A vital thing to note is that, after you give this notice, your insurance company has 60 days to remedy the situation. If your insurer pays the damages or corrects the circumstances that gave rise to the violation, they have “cured” the violation, and you cannot proceed with your bad faith claim. However, if your insurer continues to delay without a valid reason, you may be able to proceed to file a bad-faith lawsuit.
Contact Us for Legal Help
If you believe your insurance company is unreasonably delaying your claim, contact an experienced Tampa insurance bad faith lawyer at Gunn Law Group for legal guidance.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0624/Sections/0624.155.html
